FLOOD-DAMAGED CAR WARNING

October 17, 2005

Oklahoma Attorney General Drew Edmondson and Insurance Commissioner Kim Holland warned of yet another potential impact from the hurricanes that recently hit the Gulf Coast: Flood-damaged cars could soon be making their way to Oklahoma car lots.

“When a flood-damaged car is sold, by law, its title should note the damage,” Edmondson said. “A less-than-reputable car dealer can take a car that’s been totally submerged, clean it up and sell it as they would any other used car. It can mean huge profits for the car dealer, and a huge headache for the car’s new owner.”

Edmondson said car buyers can take steps to protect themselves when purchasing a used car, such as: Shop at a reputable dealership; Inspect the car’s interior for water stains; Don’t purchase a car that smells of mildew; Ask the dealer about the car’s history and the location of its previous owners; Look under the hood for signs of rust; and Have the car inspected by a trusted mechanic before making a purchase.

Holland encouraged consumers to check with their insurance agents before buying a vehicle they think may be flood-damaged. Most insurance companies have access to the National Insurance Crime Bureau registry of cars damaged by the recent hurricanes. The Web site, www.nicb.org, contains information about flood-damaged cars.